Mumbai: Indian stocks fell for the first time in three days, led by Tata Steel Ltd. on concern Europe's debt-cutting measures will hurt global growth. State Bank of India dropped after profit missed analysts' estimates.
Tata Steel, the nation's biggest producer of the alloy, declined 4.9 per cent. Metal prices tumbled on concern that demand may weaken. State Bank of India, the No. 1 lender, slid 4.4 per cent.
"People are still worried about European debt and are pulling out money, especially from commodities," said Deven Choksey, chief executive officer at K.R. Choksey Shares & Securities in Mumbai who manages about $123 million for wealthy individuals. "Investors are somewhat cautious."
The Bombay Stock Exchange's Sensitive Index, or Sensex, fell 271.27, or 1.6 per cent, to 16,9994.60, its lowest level since May 7. The gauge advanced 1.3 per cent last week, its first weekly gain in three. The S&P CNX Nifty Index on the National Stock Exchange lost 1.7 per cent to 5,093.50. The BSE 200 Index dropped 1.4 per cent to 2,160.45.
Tata Steel lost 4.7 per cent to Rs547.95. Sterlite Industries (India) Ltd., India's largest copper producer, retreated 3.8 per cent to Rs701.3. Hindalco Industries Ltd., the No. 1 aluminium producer, fell 3.5 per cent to Rs163.40.
State Bank lost 4 per cent to Rs2,224.25. Quarterly net income fell 32 per cent, the first decline in more than three years, as the lender set aside more provisions for bad loans. Analysts had estimated profit of Rs27.3 billion (Dh2.2 billion), based on the average of 21 predictions compiled by Bloomberg.
